5 Don’ts to Keep in Mind When Applying for a Mortgage Loan

If you are very excited at the idea of finally being able to purchase a place that you can call your own, try to take a few deep breaths and do not let your emotions get the better of you. Whether you are looking for a condominium, an apartment, or perhaps even a cluster house, it would be a good idea to search for possible properties using websites such as PropertyGuru Malaysia.

Beyond browsing through various real estate ads, everything else about looking for a house for sale is not a simple ordeal. After all, you will have to go through a lot of processes, including appraisals, inspections, contract negotiations, loan applications, and possibly even repairs, to name a few.

1. Don’t Quit Your Day Job Just Yet

If you are feeling miserable at your current place of work but really need or want to apply for a mortgage loan as soon as possible, it would be wise to tough it out for a bit longer, at least until you can get your application approved. Otherwise, you might find yourself in a more miserable situation, either having application after application rejected by every lender you apply to, or being stuck with a pile of bills and other expenses that you can no longer afford to pay off right on time, much less in full.

2. If You Freelance, Be as Responsible as You Can

If you are considering pursuing a freelance type of lifestyle instead, you may want to try your luck at it much earlier. Many banks feel that a majority of freelancers are not financially stable due to the nature of their work, where they have to go out and find clients on their own, without a boss to keep an eye on them and their productivity rates. However, just because it is more difficult does not mean that it will be impossible to get that loan approved. You will just need to be much more cautious with handling your money.

3. Stop Buying Too Many Things with Credit

If you are the type to take out too many loans at once, and you tend to struggle to pay each and every one of them off, then perhaps it is not yet the best time for you to go about purchasing a house. The reason for this is because many lenders will not feel that you are a good candidate if you appear to be struggling just to pay off the bills and loans that you already have. This is made even more difficult if one of your loans happens to be something significant, such as one you took out for tuition, or one that you got because you were going to buy a new car.

4. Don’t Sign Up for a New Credit Card Too Soon

Even if some credit card offers with 0% interest can be absolutely tempting, you must do everything in your power to resist the temptation of signing up for a new one, especially if you plan to apply for a loan, or have just gotten one approved. This simple act can already deduct a couple of points from your total credit score. Applying for a new credit card throws up warning signals to your lender that you are being dishonest about the loans that you will need, according to an article by Kayla Sloan on Magnify Money.

5. Don’t Wait Too Long to Try and Get the Lowest Rates

The difference between rates will probably not be that high, perhaps only .05 percent apart, even. Forbes recommends that if you have found a house that fits your needs and that is within your price range, it should still be a safe and sensible choice to take the plunge and take it. Just make sure that you are not buying a house if you cannot afford the initial down payment, even if the property has rates that are incredibly low. Sure, you will get a house that is relatively cheap, but it will not possess the qualities that you really wanted to have in your dream home. Think about it this way: is it really worth it to buy something that happened to have the lowest price if it does not make you happy at all?

The Conclusion: Be Patient, but Don’t Rush into Things

As we can sum up from this post, you just need to know when to wait and when it is finally the right time to act on any part of the process. Before you do make any decisions, always think your situation over carefully so that you know what you are going to get into. With enough patience and research, you will definitely be able to get a great place to stay in Malaysia for the long term.